Hamlin Capital Management LLC Acquires 6,566 Shares of Watsco, Inc. $WSO

Key Points

• Hamlin Capital Management LLC increased its stake in Watsco, Inc. by 1.9%, acquiring an additional 6,566 shares during the second quarter, bringing their total holdings to approximately $158 million.
• Watsco reported a miss on earnings for the last quarter, with $4.52 earnings per share compared to analysts' expectations of $4.84, alongside a revenue of $2.06 billion which fell short of forecasts.
• The company announced a quarterly dividend of $3.00 per share, which translates to an annual yield of 3.2% and a dividend payout ratio of 92.02%.

Hamlin Capital Management LLC raised its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 1.9% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 357,837 shares of the construction company's stock after acquiring an additional 6,566 shares during the quarter. Watsco makes up 3.7% of Hamlin Capital Management LLC's holdings, making the stock its 17th largest holding. Hamlin Capital Management LLC owned about 0.88% of Watsco worth $158,028,000 as of its most recent SEC filing.

Several other hedge funds also recently bought and sold shares of WSO. WPG Advisers LLC bought a new position in Watsco in the 1st quarter valued at $25,000. Ameritas Advisory Services LLC bought a new position in Watsco in the 2nd quarter valued at $26,000. TCTC Holdings LLC grew its position in Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after acquiring an additional 30 shares during the last quarter. Rossby Financial LCC bought a new position in Watsco in the 1st quarter valued at $33,000. Finally, Ransom Advisory Ltd bought a new position in Watsco in the 1st quarter valued at $45,000. Institutional investors own 89.71% of the company's stock.

Watsco Price Performance

Shares of NYSE WSO opened at $371.41 on Friday. The stock has a market capitalization of $15.06 billion, a P/E ratio of 28.48 and a beta of 0.94. Watsco, Inc. has a 1-year low of $350.00 and a 1-year high of $571.41. The business has a fifty day moving average price of $398.64 and a 200 day moving average price of $440.31.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). The company had revenue of $2.06 billion for the quarter, compared to analysts' expectations of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.The company's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same quarter last year, the company earned $4.49 earnings per share. As a group, equities research analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Thursday, October 16th will be paid a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Thursday, October 16th. Watsco's dividend payout ratio is 92.02%.

Analysts Set New Price Targets

Several equities analysts have commented on WSO shares. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Watsco in a research report on Wednesday, October 8th. Mizuho dropped their price target on Watsco from $525.00 to $400.00 and set a "neutral" rating on the stock in a research report on Friday. UBS Group lowered their price objective on shares of Watsco from $450.00 to $425.00 and set a "neutral" rating for the company in a research note on Tuesday, September 23rd. William Blair reissued a "market perform" rating on shares of Watsco in a research report on Wednesday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Watsco from $425.00 to $400.00 and set a "neutral" rating for the company in a report on Wednesday. One research analyst has rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $447.50.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.

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